The new coalition government leading the United Kingdom needs to act decisively to spur an economic recovery and must clarify any new approaches to regulation to facilitate a healthy and growing British insurance industry–one of the linchpins of the local economy, according to the head of Willis, Joe Plumeri.

The negative impact of the downturn on insurance is reflected in the quarterly results of both large and small brokerages, Mr. Plumeri, chair and chief executive officer of Willis Group Holdings, told an audience of insurance executives in London.

"Right now, our industry in the U.K. is hit by the double whammy of a persistent soft market and lagging economic activity," noted Mr. Plumeri in a speech to the British Insurance Brokers' Association 2010 Conference and Exhibition. "We've seen a dramatic slowing of the consolidation among smaller firms and downward pressure on the value of broking businesses."